v3.25.4
Debt
 12 Months Ended
Dec. 31, 2025
Debt Disclosure [Abstract]  
Debt

6. DEBT

 

On October 6, 2022, the Initial Member approved the application of the reduced asset coverage requirements in Section 61(a)(2) of the Investment Company Act to the Company and such election became effective the following day. As a result of this approval, the Company is currently allowed to borrow amounts such that its asset coverage ratio, as defined in the Investment Company Act, is at least 150% after such borrowing (if certain requirements are met). As of December 31, 2025 and December 31, 2024, the Company’s asset coverage ratio based on the aggregate amount outstanding of senior securities was 206% and 283%.

 

The Company's outstanding debt was as follows:

 

 

December 31, 2025

 

 

December 31, 2024

 

 

Aggregate
Borrowing
Amount
Committed

 

 

Amount
Available

 

 

Carrying
Value

 

 

Aggregate
Borrowing
Amount
Committed

 

 

Amount
Available

 

 

Carrying
Value

 

Credit Facility(1)

$

480,000

 

 

$

30,150

 

 

$

449,850

 

 

$

500,000

 

 

$

279,900

 

 

$

220,100

 

Total debt

$

480,000

 

 

$

30,150

 

 

$

449,850

 

 

$

500,000

 

 

$

279,900

 

 

$

220,100

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
(1)
Provides, under certain circumstances, a total borrowing capacity of $1,000,000.


The weighted average interest rate of the aggregate borrowings outstanding for the years ended December 31, 2025 and 2024 was 6.48% and 7.94%, respectively. The average debt of the aggregate borrowings outstanding for the years ended December 31, 2025 and 2024 was $322,050 and $104,372, respectively.

Credit Facility

SPV entered into the Credit Facility on February 10, 2023 with Ally Bank (“Ally”) as administrative agent and collateral agent. State Street Bank and Trust Company serves as collateral custodian and securities intermediary. The Company serves as collateral manager under the Credit Facility.

Advances under the Credit Facility bear interest (at SPV’s election) at a per annum rate equal to either (x) Daily Simple SOFR (as defined in the Credit Facility) or (y) Term SOFR (as defined in the Credit Facility) with an Available Tenor (as defined in the Credit Facility) of either one month or three months. The applicable spread is 2.25% per annum. SPV paid a non-usage fee of 0.50% per annum for the first three months on the average daily unused amount of the financing commitments. Thereafter, SPV pays between 0.50% and 1.00% per annum, depending on the unused amount of the financing commitments, on the average daily unused amount of the financing commitments. On September 26, 2024, SPV entered into a second amendment to the Credit Facility (the "Second Amendment"). The Second Amendment, among other things, amended certain components of the Borrowing Base (as defined in the Credit Facility), resulting in an increase in the Borrowing Base. On December 20, 2024, SPV entered into a third amendment to the Credit Facility (the "Third Amendment"). The Third Amendment, among other things, extended the maturity date, decreased the applicable spread, increased the total commitments under the Credit Facility, and increased the accordion feature and amended certain components of the Borrowing Base (as defined in the Credit Facility), resulting in an increase in the Borrowing Base. On October 28, 2025, SPV entered into a fourth amendment (the “Fourth Amendment”) to the Credit Facility. The Fourth Amendment, among other things, decreased the Facility Amount (as defined in the Credit Facility) to $480.00 million, decreased the applicable spread, amended certain components of the Borrowing Base (as defined in the Credit Facility), resulting in an increase to the Borrowing Base and adds the ability to borrow under a swingline sub-facility that is available on a same day basis.

The Credit Facility is drawable in U.S. dollars. As of December 31, 2025, the total commitments under the Credit Facility were $480,000. The Credit Facility also has an accordion feature, subject to the satisfaction of various conditions, which could bring total commitments under the Credit Facility to $1,000,000. Proceeds from borrowings under the Credit Facility may be used to acquire portfolio loans by SPV, fund unfunded commitments of SPV with respect to loans, make distributions to the Company or pay related expenses. All amounts outstanding under the Credit Facility must be repaid by December 20, 2029.

SPV’s obligations to the lenders under the Credit Facility are secured by a first priority security interest in all of SPV’s portfolio of investments. The obligations of SPV under the Credit Facility are non-recourse to the Company, and the Company’s exposure under the Credit Facility is limited to the value of the Company’s investment in SPV.

In connection with the Credit Facility, SPV and the Company have made certain customary representations and warranties and are required to comply with various covenants, reporting requirements and other customary requirements for similar facilities. The Credit Facility contains customary events of default for similar financing transactions, including if a change of control of SPV occurs or if the Company is no longer the collateral manager of SPV. Upon the occurrence and during the continuation of an event of default, Ally may declare the outstanding advances and all other obligations under the Credit Facility immediately due and payable. As of December 31, 2025, SPV and the Company were in compliance with these covenants.

Costs of 7,536 were incurred in connection with obtaining and amending the Credit Facility, which have been recorded as deferred financing costs on the Consolidated Statements of Financial Condition and are being amortized over the life of the Credit Facility using the straight-line method. As of December 31, 2025 and December 31, 2024, outstanding deferred financing costs were $4,727 and $5,816.
 

The following table presents summary information regarding the Credit Facility:

 

 

 

For the Year Ended December 31,

 

 

For the Year Ended December 31,

 

 

For the Year Ended December 31,

 

 

 

 

2025

 

 

2024

 

 

2023

 

 

Borrowing interest expense

 

$

20,869

 

 

$

8,283

 

 

$

373

 

 

Facility fees

 

 

1,257

 

 

 

1,492

 

 

 

1,928

 

 

Amortization of financing costs

 

 

1,191

 

 

 

976

 

 

 

642

 

 

Total

 

$

23,317

 

 

$

10,751

 

 

$

2,943

 

 

Weighted average interest rate

 

 

6.48

%

 

 

7.94

%

 

 

8.28

%

 

 Average outstanding balance

 

$

322,050

 

 

$

104,372

 

 

$

5,062

 

*